All right, are we good to go? All right. Thanks everyone for joining us. My name is Tien-Tsin Huang. I cover Computer Services and IT consulting at JP Morgan. So, very happy to have MoneyGram here with us. Pam Patsley, the CEO is here; Alex Holmes as well, CFO. So, same format as the others, doing fireside chats and obviously have the opportunity for the audience to ask a question. I think this is being webcasted, so we’d probably would do want to use the mic.

But maybe I’ll just kick it off and get right into it. Pam, I guess the big theme to me – the big take away from the first quarter is that we actually saw growth accelerate a little bit and the metrics get a little bit better. So, just to start out there, maybe if you can just put some context to that, why we’re seeing a little bit of acceleration. What is MoneyGram doing specifically to drive that? How much of that is cyclical versus some of the things that you’ve been putting in place?

Pamela Patsley

Okay, great. Thanks. Welcome and I appreciate your interest in MoneyGram today. We did, and thank you for noticing, have great results for the first quarter. And I would say momentum had picked up. But we had been, I think, putting up some pretty good numbers the last several quarters. The industry, the World Bank is kind of the best measure for growth in cross border remittances. So, unlike 2009 and 2010 where that industry and shrank in 2009, very modest growth or flat in 2010, modest growth in 2011, they’re projecting kind of 6% to 8%, 7% kind of growth this year. So, the industry is back to growth and we are basically outpacing that kind of 2X.

And I think, Tien-Tsin, it’s really all the work we’ve been doing to aggressively continue to build our network, improve agent productivity and the network we’ve already had, and focus those initiatives on network improvement and activation of new network around kind of the relevant quarters. I think our marketing has been very effective. I think our message to consumer resonates well. I think we’ve worked on a lot of kind of service-related initiatives, specifically in Mexico on the receive side. I know I’ve talked about that probably a year ago. And we’re seeing the fruits of our labor there. So this is what we’re going to continue to do. It’s kind of double-digit for us on an internal talking point, if you will.

Tien-Tsin Huang

I’m curious. I’ve been getting this question more and more, Pam. It’s about just migration in general given austerity, some views on protectionism, et cetera. What’s happening with migration trends? I think sometimes we get a little bit too complacent and not appreciate migration has been a long-term secular driver. So what do you see globally?

Pamela Patsley

Yeah. So as the – I guess just in the nutshell, what we see globally is that our consumer who leaves their country of origin or their home country for work is flexible. And when the Romanians aren’t finding as much work in Spain because Spain unemployment rate is 20% to 30%. Some have it as much as 31% for the migrant population. Romanians we’re seeing or going more to Germany. The Poles aren’t going as often to Ireland to find work. So a lot of these are kind of just common sense things. Someone that we were visiting with earlier said it’s kind of like water finds its own level or whatever.

So that is certainly something we’re experiencing. And our presence in 194 countries says that can still be our consumer. That Romanian used to go to Spain but is now going to Germany can still be our consumer. And you still have the same issue with the G6 and the aging population and the low birth rate in the developed countries. So as much as the economy can be a little bit sluggish or in the dumps. And you can have all kind of theoretic policy issues around immigration, at the end of the day, to even just maintain GDP let alone grow it, most developed countries need guest workers. And Russia is living that in spades. So just a very, very low birth rate population. And so, all the Russians speakers from the stands provide most of the workforce there.

Tien-Tsin Huang

That all makes sense. So given that and what’s happening in Europe, how much time do you spend focusing on the cycle there and what’s happening there both from a macro and from a regulatory standpoint? It sounds like you’re diverse enough that you can weather the storm. But obviously, it’s a big question that people have in their minds especially at this conference.

Pamela Patsley

Yeah. Europe as a whole is an amalgamation of a mixed story really. So we still that Southern Europe, as we talked about at the first quarter and really I think also the fourth quarter conference call, Greece, Italy, Spain, Portugal very, very challenged. We saw tremendous growth in Germany and France from a send perspective. UK remained very, very strong for MoneyGram. So it’s a tale of kind of two Europe’s’. We’re seeing Poland be more of a send country and not just received. So getting back a little bit to that migration notion.

Now, so I think we’re built to weather it. But now having said that, if you just take Portugal, which I think I know Greece gets a lot of the press, but probably in terms of financial condition, Portugal may be actually some of the worst off. We have very good, very solid double-digit growth out of Portugal and something beyond the tens and the teens because we’ve been so small.

So it’s we can still grow and have market share gains because of just kind of us entering new markets and building out quarters. Again, to who’s been a sender and a receiver, it’s really interesting to see that Portugal is also now being a receive country and interestingly from parts of Africa, from Angola and Cape Verde, other Portuguese speaking countries as well as of course Brazil, which you might have more obviously guessed.

Tien-Tsin Huang

Yeah. So now, that’s good color. So just thinking about market share, you mentioned you’re taking share versus some of the ballpark numbers you’re taking share against Western Union. Can you drill down a little bit further, where do you think you’re taking this share from? Is it the informal channels, more or some of the local providers, the banks?

Pamela Patsley

Yeah. I know you all probably – if you visited with me before you – a lot of these questions I have to preface. It’s hard to give one answer when you’re in 194 countries. So the whole picture is we’re taking share and we’re taking share from all categories, from competitors big and small, from niche players, from banks and from the informal channel and the industry is growing. Where is that coming from is going to – that answer varies more by quarter.

Where are we taking share from US to Mexico? I think we can look at the numbers that are being reported and kind of come to some conclusions. It’s hard to get the data, but probably where we’re taking share there. Where we’re taking share on receives in Pakistan might be more driven by government initiatives promoting receives into that country to go through a formal channel. So in that case, it’s possibly more from an informal channel. And we might see that more in some of the other received countries in the Middle East. So it’s really a little bit of a mixed bag.

Tien-Tsin Huang

Yeah. Now, that makes sense. So another question I get a lot is, obviously you’ve been growing at a premium to Western Union, yet your margins are also lower. And I’m curious if the two are actually related at all? And now that you have a discounted pricing philosophy versus them, are the two related?

Pamela Patsley

Well, you’ve got a little bit. I think I would say, it’s not the growth isn’t coming at the expense of margins. So if that’s the relations, no. But the delta if we want to focus on kind of MoneyGram to Western Union. We were laughing earlier I kind of used the term it’s more of think of a permanent difference that right now, it would be hard to close. And that is because of the more compelling value proposition on the consumer price. And we generally, on average, pay about four points higher. Again, across the globe total portfolio in agent commissions.

So those two together will provide kind of that revenue net of commission permanent difference to margin. I think then we’re smaller. So from a leverage perspective, leveraging our fixed costs over fewer transactions in a smaller revenue base. So that we will continue to grow into. And then you look at our variable costs that we’ve addressed commissions, which are probably 80% some plus of our variable cost structure. I think we’ve been doing a really good job addressing in a balanced way, improving our operating efficiency so on that taking call centers calls offshore or outsourcing them, utilizing development offshore or outsourced model that can be cheaper. We still have that to go from an enterprise architecture perspective on outsourcing.

So does that kind of give you some color? Alex, you want to add anything on that margin?

Alex Holmes

Yeah. No, I mean I think we’ve been pretty transparent on some of the border cost initiatives we’ve had underway from broad restructuring, some of things Pam hit on from offshoring certain aspects of our call centers and some of our fixed cost infrastructure reducing global foot print around the world from a number of redundancies in office space and some other areas as well, focusing on more stream lined operations systems.

And that was taking out about $20 million dollars in cost over the last two years. And this year, we think we have another incremental $12 million or so to go after. And those are just on some big broad initiatives which doesn’t come back to some of the points Pam made on just leveraging the phase infrastructure better putting more throughput more product these kinds of things. So I think we’re well underway on that front.

Tien-Tsin Huang

Right. I think one of the advantages you have is obviously your compliance network and the amount of money you spend there. Yet, there’s also has been a little bit more regulation with Dodd- Frank. Any surprises that we need to consider as it relates to sort of regulatory costs?

Pamela Patsley

No. This has been a little bit of a theme in some of the one on ones this morning, I guess, from some news some others shared may be last week. We have been very open. The rules were published on CFPB in the summer, I think late July. And they were formalized in January. And those, the spend, the development, it’s true. There is a need for spend and development but that’s been in our plan. That is what we’re spending, this much of our development dollars that we always had planned to spend this year. And that’s what the project is.

So far, so good. And our plan is to be done and compliant before the first week of February, when it’s required. And I think we can be in an interesting position to kind of leverage our very proactive approach to adopting these new rules and regulations and use that, I think, to a competitive advantage for MoneyGram. And safe, sound, it’s well in hand and well under control. The trickiest part of Dodd-Frank is going to be some of the printing issues, particularly when it’s not English language characters. So that’s going to be the same for everybody.

Tien-Tsin Huang

That was good to know. That’s very good to know right here. So, just digging in on that sort of two related questions. With so much money that you’re spending on compliance, can you try and recapture that in the form of better commissioned economics with your agents understanding that you could potentially share that back and potentially push that down to the agents. And as a related question, how about on pricing with the consumer, does that change your ability to maybe, again, change the trajectory on consumer prices?

Pamela Patsley

Yeah, I think so. I’ll give it a go, and will let Alex back clean up. So, the first part of your question was on commissions...

Tien-Tsin Huang

Yeah, agent commissions.

Pamela Patsley

And you having the better – right. Systems is that I would say we have been doing a good job. So there’s, again, a balance rolled over. So entering new places where we really need presence and to grow our presence where MoneyGram has not been, that may not be the place to start with the rock bottom commission.

But we have that as a goal for our regional sales team and our regional managers. So getting it in the dialogue and kind of on the chart as a KPI, is an important metric. And I would call your attention to the last couple of quarters. It’s a little hard to see. You have to pull the bill pay commission out. But what we have shared with you is that if you look at just money transfer commission, even withstanding the contractual step-up in commission rates to a very larger agent that we have, we held money transfer commission flat.

So I think that’s a good message about the possible direction. Probably as a practical matter, Tien-Tsin, I think the whole notion of our perhaps superior and very consumer-friendly consumer protection initiative around consumer anti-fraud and those things are maybe more a marketing tool and probably the commission element is driven a little bit. The opportunity to bring that down as much as that as it is really kind of growing into a lower commission, as we continue a much higher growth rate and have more of those natural revenue leverage as we build out the send and receive market pricing. You can correct anything you need to on that and then we can take pricing.

Tien-Tsin Huang

Just with CFPB and all the disclosures around pricing, this is obviously about a focus on this piece.

Pamela Patsley

Yeah.

Tien-Tsin Huang

I’m curious how that might influence pricing.

Alex Holmes

I think from a direct pricing perspective, I think it remains be seen how that’ll play out. I think from probably from what we’re providing to an agent, what we’re providing to a consumer, today a lot of what of CFPB is asking for is already there today. It’s just sort of on the back end of the transaction. They’re asking us to put that towards the front. I think to the extent that we’re in compliance with that, that others are not, that there’s enforcement of that, I think it should be beneficial to revenue opportunity.

I think one sort of begets the other. And so to the extent that we’re able to leverage that capability as Pam said, it really drives some capability in the marketplace. That really provides an opportunity to do different things on pricing, do different things on commission over time.

I don’t think, out of the gate, it really sets up that way. But certainly from requirements on disclosures, on aggregation, on a lot of other things going on in the regulatory world, our responsibility versus agent’s responsibility, I think, is definitely increasing for both parties. And certainly, our ability to provide a superior system that allows agents to do what they need to do on a daily basis is going to be beneficial for us over time.

Tien-Tsin Huang

Okay, good. Maybe just one more and then we can open it up. Just this concept of exclusivity in agents, what’s happening? It seems like it ebbs and flows a lot. But how much of that is opportunity versus risk for MoneyGram?

Pamela Patsley

Actually, being the smaller global player and the one just now building out the international network, the last one I say just now, but really the last five, six, seven years not the last couple of decades. I think it works much more to our advantage. This trend on exclusivity kind of going away or not being present has largely been centered around received countries, received agents because the practicalities on the send side, I think, just get a little more cumbersome in terms of marketing, branding, and process for the sender.

And it’s really been mostly centered around some African countries, some very small Eastern European countries, India within the last 15 months when we were able to sign India Post and State Bank of India. And then it kind of culminated really for us with some great news that we were able to sign Elektra in Mexico that had been one of our competitors, large payout agents on an exclusive basis and add them to our network. And they got up and running right away within weeks of signing that. And it’s doing very, very well.

So that’s really kind of the trend. I think it’s good to remind everyone on the send side, while I say, this exclusivity notion and the going away part is generally centered around receive countries, receive agents. Even in the US, our send agents in more the retail category, it’s been a tale again of kind of two messages. It’s exclusivity as it relates to global brand, so it’s either us or another global brand. But then they’ll have niche players also. So in that regard, we’ve been living in a non-exclusive world on send countries for quite a long, long time.

Tien-Tsin Huang

Good. So, halfway through the presentation. We’re going to open it up to the audience if there are questions. Otherwise, we’ll continue. Yeah?

Question-and-Answer Session

Unidentified Analyst

How do you confront the presence in the pricing of Xoom on walmart.com when it comes time to renegotiate that large retail partner contract that you have?

Pamela Patsley

Yeah. That Xoom element will not really enter into the renegotiation on the in-store cash model face to face business. We initiated moneygram.com connecting to walmart.com on US to US in October, probably about the same time maybe a couple of weeks before Xoom launched with them on US outbound. And I will just say, we are working very aggressively and moving nicely. I’m very pleased with our progress that we will have a US outbound on walmart.com. So the trajectory we’re on, since that’ll be in place sometime soon.

Unidentified Analyst

And maybe it would be helpful for you to explain why the dot-com doesn’t influence the face to face in-store economics a little bit?

Pamela Patsley

I think today, well, I think Wal-Mart sees it’s a whole different customer experience. And so the customer that’s willing to pay for convenience of sending at a dot-com, the growth rates we have seen since October in our US to US and our US to US in-store it’s just been additive. So they wouldn’t really say, oh my god, since we launched that, now our in-store US to US is suffering. That is just absolutely not been the case. They are really, really pleased. It’s actually drawn more to the category. I think that whole service is what’s really positive about it from an industry perspective is it’s a category expander, if you will.

A little bit of history and I don’t know it exactly. But at the time that Xoom, I think, inked the deal, our contracts have been with Wal-Mart Financial Services. I think Xoom inked their deal I’m pretty sure this is right with walmart.com. And at that time, at Eduardo Castro-Wright was running that service in Northern California. So there was a relationship there. It might not have been the smoothest thing that went through the Wal-Mart system themselves. But fine, the Xoom product is very different from ours. And I think Wal-Mart has a view on their consumer I think. This is why I like our chances of being able to add US outbound as well. I’m not saying displace soon, but also add it. And that’s the path we’re on.

So it’s not a 10-minute money transfer service. There is a lot more FX added that the receiver, I think, kind of bears the cost of in a Xoom model versus ours, if you just pull some pricing tables. And I think that’s mostly true everywhere, maybe Mexico, the place where it’s the closest to our pricing. So overall, I think our product message resonates very, very well with the Wal-Mart folks.

Unidentified Analyst

(Inaudible).

Pamela Patsley

Okay. The question just for the mic was how does the CFPB rules around the 30-minute opportunity to resend or cancel a transaction impact our marketing initiatives or the whole economies, the messaging whatever. So there will be now a receipt before the transaction is finalized. I think I’ve got that right.

Unidentified Analyst

Correct.

Pamela Patsley

That will disclose that. If a consumer, though, if they then initiate and complete the send transaction, if their receiver picks it up before that 30 minutes, it’s not a cancelable transaction. And really, this is a little bit for most of those CFPB rules, our consumer knew that already. They knew they could cancel transactions if it wasn’t picked up. They knew most of this. So it’s a little bit getting for us and probably the other industry leader.

We’ll probably both really did this because it’s just a good business practice. But now, we have to fit it into a government-directed form and format. So what’s interesting is that everybody had some of those policies in the industry and the impact CFPB might have on niche players and otherwise. But it’ll also be interesting, will the government ever know so.

Unidentified Analyst

Can you compare cost of transferring money in online versus your cash to cash business model?

Pamela Patsley

Yeah. The online model is more expensive because the online model, it’s clearly a pay for convenience because when it’s a credit card or a debit card, and the credit card more expensive than the debit card, but it’s to cover and there, the interchange fees from Visa and MasterCard. And the consumer knows that. And we’ve still been putting up close to 30% growth in our dot-com business.

Now, have an ACH model also on walmart.com. And so, that is cheaper than the credit card or debit card. Our commission rate with Wal-Mart on that dot-com business is also less than our face to face business. But we actually see the consumer still prefer even with that ACH choice on the US to US, the consumer tends to prefer our credit card and debit card solution even on the walmart.com.

Unidentified Analyst

Commission rates as a percentage of revenue are lower or are they lower on absolute basis on the ACH versus traditional model?

Pamela Patsley

I’m sorry. Say the question again.

Unidentified Analyst

So, you said like commission rates are lower in ACH model, in ACH money transfers. Does that add up?

Pamela Patsley

Commission rates, we only have one place where we’re doing the ACH model and the commission rate on that is lower than in a traditional model.

Unidentified Analyst

Is that as a percentage of revenue, like your fee?

Pamela Patsley

It’s percent of the fee charge. Commissions are always stated as a percent of the fees. So as a percent, that percent is lower.

Unidentified Analyst

Got you. Thank you.

Tien-Tsin Huang – JP Morgan

So, maybe we can just get an update onto the online you mentioned dot-com already, ACH, but also mobile strategy. Sort of what’s the latest and greatest there? It feels like every day, I read the headlines somebody’s talking about person to person or mobile money transfer. So what is MoneyGram doing to invest and participate in that market?

Pamela Patsley

Well, we’re trying to be very judicious about what we pick because believe me, all the ideas that come in our door, people wanting to partner with us, use our core competency of this great compliance engine, this 275,000 points of presence around the world and growing is almost an endless line every week. We have kind of centered, Tien-Tsin, as I think you know, around the concept of a self-service model. So, we have the agent model and a more high touch experience. But the self-service model broadly is of course dot-com. But it’s also our kiosk solutions, which is in Saudi Arabia, which with 7/11 all across Australia and in a number of other places. It’s our online solution.

Our whole business from Japan and this continues to grow very aggressively is a dot-com business. And we probably don’t give ourselves enough credit for some of these other initiatives that are out there besides our traditional moneygram.com. So, that’s kind of where we’ve been centered.

I’ll let Alex maybe give a couple of comments as it relates specifically to the mobile side. But on a numbers basis, again, that alternative channels, if you will, self-service model for us grew 62% in the first quarter and is now up to 4.8% on a growing denominator on our money transfer revenue. So, we’re very pleased with kind of what we’re doing and I think we’ve got the right balance of investment.

Alex Holmes

Yeah, absolutely. I think the – we have this big, beautiful, wonderful 275,000 agent physical locations that sort of blends on across 194 countries. For us, to the self-service concept, anything that’s more virtual or less tangible in a physical location whether it be a mobile phone or a bank account or a credit card, prepaid card, an ATM machine, et cetera, is an extension of that service to us.

And so for us to move from physical and add virtual applications is a great opportunity for us. We also have incredible abilities because of the physical network of cash in and cash out. So when you think about mobile wallets, you think about mobile technology. I think about mobile wallets or an e-wallet or people storing value somewhere. And so cash in and cash out of that is an extremely important part of how those operate.

I think about a prepaid card today in the amount of loads we do to those prepaid cards. And to me, a wallet on a mobile phone isn’t much different than that. So when you take that and then add into that our ability to transfer money across the world, across borders, we can bridge together multiple mobile operators. We can bridge together handset maker. And that’s something that a lot of them have some limitations on because they have their own closed loop network.

And you see some joint venture opportunities out there. But I think we have an opportunity to plug into those as well and really expand our category and expand our capabilities. And that’s a lot of what we’ve been focused on and working on over the past couple of quarters.

And hopefully, we have some good things in the pipeline coming in the near future. But today, we’re doing transfers to cell phones in the Philippines through Smart. We’re doing sends from National Bank of Abu Dhabi through a mobile application in Abu Dhabi. And we’re seeing good – Poste Italiane as well has a mobile service that we’re using today. We partnered with a couple of underlying carriers in different places.

And so, some big opportunities, a lot of interest from banks and other traditional retailers to have a mobile technology. And I think we have the ability to help drive money transfers through that technology.

Tien-Tsin Huang – JP Morgan

So I mean, how can you exploit the agent network that you have to sort of become a reload network like you’re talking about, not only through these physical retailers, but also to digital wallets. There’s a lot of content out there that MoneyGram could basically bridge in digital to cash in by sources.

Alex Holmes

Yeah.

Pamela Patsley

Yeah.

Tien-Tsin Huang – JP Morgan

So is that a real concept or more pie in the sky.

Pamela Patsley

No, it’s a real concept. It’s a real initiative.

Tien-Tsin Huang – JP Morgan

How does the pipeline look? I guess as you’re talking about some of these digital providers, there’s obviously a lot of different ones, well known household names in the US and you’ve got whatever, M-PAiSA, things in Japan, et cetera. So how is that pipeline looking as you’re talking to (inaudible)?

Alex Holmes

I think it looks really robust. Unfortunately, I think the downside of it is it’s a little bit slow to develop, because you’re dealing with two companies probably from dispropositions, which is one that’s largely cash-based and another that’s largely technology- based. And so for them to get together, us and somebody else and to think broadly about how do I add cash into your network or how do you let cash out of your network. It’s a different way of thinking for that industry. So there’s lot of discussions underway.

Like National Bank of Abu Dhabi and like Smart in the Philippines, there’s more to come. And we’re having great discussions. I think that opportunity is bold. I mean one of the things we see today in the money transfer space is we’ve added international top up to mobile phones. So people coming in not only can do money transfers, you can load a mobile phone in foreign countries. That’s a very successful program for us today.

I think our success in expanding our bill pay capabilities in the US to load over 125 different prepaid cards, our ability to load cell phone top up, prepaid thing. We’re extending that technology, integrating that more holistically into the core money transfer concept and thinking about how do we provide more tangible value through our service into those different markets.

Tien-Tsin Huang – JP Morgan

Okay.

Pamela Patsley

And that’s not an initiative. That’s real and real revenue in a very fast growing part of our bill pay business. So that’s utilizing those points of presence in the US 35,000 or so, and people coming in and whether they wanted a top up their RushCard or their Univision card, their NetSpend card or whatever, or load money on to a phone in Jamaica, they can do that.

Tien-Tsin Huang – JP Morgan

Just as a follow on somewhat related to that, just you mentioned the 5% of revenue or so that’s tied to some of these high growth initiatives. Are these customers new customers? How do they break down between new versus existing MoneyGram?

Pamela Patsley

Largely, it’s hard to get a lot of that data. But largely, they are new. And I would say not to give away any kind of secret sauce, but what we’re really excited about because we were just talking about it, what we are seeing is a lot of cross over from this robust load network on our bill pay platform., those customers then in turn doing a first money transfer transaction.

Tien-Tsin Huang – JP Morgan

Yeah. There’s some synergy there.

Pamela Patsley

Yeah, absolutely.

Tien-Tsin Huang – JP Morgan

Okay, good. Any other questions? We have, what, a couple of minutes? We got two minutes. Anyone else? I know you guys issued an 8-K. I figured I’d ask you that the departure of Daniel O’Malley on the Americas and Emerging Market side, can you give us a little bit more detail on the force behind that?

Pamela Patsley

Yeah. Not really. But Dan is not with us any longer. There was no severance paid. What I can tell you more about is what it’s not. It’s not a whistleblower issue. It’s not an untoward behavior issue. It’s not a current code of conduct violation or anything like that. So, as we continue to make progress in putting some of the legacy issues behind us where we are solely focused on putting legacy issues behind us.

Tien-Tsin Huang – JP Morgan

Okay, good. So, maybe ending on the happier note then, just thinking about the capital structure, you’ve done a great job of obviously...

Pamela Patsley

Yeah.

Tien-Tsin Huang – JP Morgan

...cleaning that up recently. So what should we be looking for in terms of potential change on the balance sheet?

Pamela Patsley

More clean up.

Tien-Tsin Huang – JP Morgan

More cleaning.

Pamela Patsley

And no 13.25% notes from Goldman Sachs. So, Alex, do you want to go through just a couple of details on that $325 million that’s still sitting out there?

Alex Holmes

I certainly can, yeah. No, it’s as Pam said, we like to say 13.25% that we’re paying on $325 million today, which has a first call date of March 13 and a full make-whole premium associated with that. But we’ll be looking at and have been looking at timing of taking that out. We are actually able to call back as part of our November transaction $175 million of that. It used to be $500 million of those 13.25% notes. And so now, it’s down to $325 million.

So hopefully later this year, we’re looking at sort of the beak even analysis on that make-whole premium and figuring out the right time to restructure our balance sheet a little bit again and delever and reduce our outstanding interest expense. So, we’ve paid over $400 million in debt down over the last two and a half, three years. We’ve taken out of our preferred shares and moved it all to common. That was also – if you counted that as total debt, that was pretty expensive. That was picking at 12.5%.

So, we’ve done some great things on the debt side. We just got a step down on our first lien notes. We have $490 million of first lien term loan. Just got a step down of 25 basis points on that. That’s paying $4.25 today. So, we’ve done some wonderful things that our interest expense was well over $100 million when I came into the company back in 2009. It’s down south of probably $65 million as we exit this year, not including anything we could on the $325 million earlier. So, all things are moving ahead on that. We’ve generated over $100 million of free cash flow this year. And to the extent we don’t have other needs for that, we’ll focus on continuing to delever.

Tien-Tsin Huang

All right, terrific. Really appreciate your being here. Thank you so much.

Pamela Patsley

Great, thank you. Thank you.

Alex Holmes

Thanks very much.

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